Dental and vision insurance pushed back until December 2006

Supplemental dental and vision insurance for federal employees will be available starting December 2006, six months later than planned, the Office of Personnel Management announced Monday.

The coverage will be in addition to standard health insurance. It will be voluntary, and will not include any subsidy from the federal government. OPM said that the size of the federal population could be used as a negotiating tool to obtain lower rates.

The government is in the process of soliciting bids from both national and regional health insurance providers for the insurance.

Initially, OPM said the dental and vision coverage would be available to employees beginning July 2006, but the office said it is pushing the date back so that open enrollment will correspond with open enrollment for standard health insurance and Flexible Spending Accounts. The open season for all three will run from mid-November to mid-December each year.

In addition, OPM said the six-month delay will allow employees to "take into account tax and other financial planning considerations" because of the year-end timing. In OPM's August solicitation for dental and vision contracts, the office initially floated the six-month delay, citing, among other reasons, concerns about lower enrollment because of an unorthodox summer start.

In its solicitation of contracts, OPM said all dental insurance plans should provide preventive care such as oral evaluations, topical fluoride treatment and sealants for a "small co-pay;" greater services such as extraction and root canal therapy should be covered at 70 percent after a deductible; and major dental work such as permanent crowns, bridges and dentures should be covered at 40 percent after a deductible. Deductibles are not to exceed $100. OPM also said it expects contractors to provide orthodontia coverage of at least 30 percent.

For vision coverage, OPM said it would like providers to offer full coverage for annual eye examinations, including comprehensive exams for vision problems such as glaucoma, diabetes and ocular hypertension. Companies may contract to provide eyewear, such as contact lenses and eyeglasses, as well.

OPM is required by law to provide dental and vision coverage. The 2004 Federal Employee Dental and Vision Benefits Enhancement Act required the government to offer employees this choice by, at the latest, December 2006. The coverage will be available to employees, retirees and their dependents.

OPM said in its request for bids that the base period for contracts will be seven years, with additional option periods also consisting of seven years. The government will not award a single company the contract, but will instead grant several contracts and allow employees to pick their supplier.